Midsize banks outperform larger banks; high-performing institutions achieved median double-digit ROAE in all asset tiers
CPG analyzed and compared the financial performance of the banking industry for the twelve months-ended September 30, 2015. Banks were categorized by four asset tiers: SIFIs defined as those institutions with assets of greater than $50 billion; Large Banks ($10 billion and $50 billion); Midsize Banks ($1 billion and $10 billion); and Community Banks (less than $1 billion). High-performing institutions were defined as those institutions in each asset tier that rank in the top 25th percentile in terms of return on average equity (“ROAE”) (tax-adjusted for S-corps where appropriate).
Midsize Banks were the most profitable asset tier group, recording a median ROAE of 8.42%. Reasons why the Midsize Banks outperformed the other groups.
High-performing institutions in all asset tiers were able to achieve double-digit median ROAE for the twelve months-ended September 30, 2015. There were similarities and differences in the key factors that drove high performance. For more information and to download the full report, click here.